Jump to content

DAX 40 in a Bear Market, FTSE 100 Dragged Down to Key Support


Recommended Posts

DAX 40, FTSE 100 Analysis and News

  • DAX 40 | Bear Market Hit, Risks Remain Lower
  • FTSE 100 | Dragged Down to Key Support

DAX 40 in a Bear Market, FTSE 100 Dragged Down to Key Support

DAX 40 | Bear Market Hit, Risks Remain Lower

Geopolitics remains at the forefront of investor focus and thus dictating much of the price action. The main highlight overnight had been the spike higher in oil prices in which Brent crude futures rose to $139/bbl amid reports that US are considering whether to ban the import of Russian oil. A reminder that, the US import roughly 3% of crude oil from Russia, which was equivalent to 209kbpd of crude during 2021. In turn, with the surge in oil prices showing very little signs of easing, Russian contagion risks are spreading, raising concerns of a global economic slowdown. That said, equities remain a sell on rallies, in which European futures face the bulk of the selling, given Europe’s proximity to the conflict.

As European indices post their largest weekly outflows on record, the DAX has fallen into bear market territory having posted a 20% decline from its November peak. As risks remain firmly titled to the downside, eyes will be on a test of the 50% Fibonacci retracement at 12,280-300. Meanwhile, topside resistance resides at the 200WMA (13,104).

DAX Chart: Weekly Time Frame

DAX 40 in a Bear Market, FTSE 100 Dragged Down to Key Support

Source: Refinitiv

image.png

FTSE 100 | Dragged Down to Key Support

While the FTSE 100 has been a relative outperformer, the index has not been immune to the recent bout of risk aversion. Although, the index is now back down to a key support area from 6800 having made a convincing break below its 200DMA. A close below 6800 however, places the index on course for a move towards 6500-6600. Resistance is situated at 7000 and 7200-20 above.

FTSE 100 Chart: Daily Time Frame

DAX 40 in a Bear Market, FTSE 100 Dragged Down to Key Support

Source: Refinitiv

image.png

RESOURCES FOR TRADERS

Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

 

Mar 7, 2022 |  Justin McQueen, Strategist. DailyFX

 

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • DIMO's platform seems to be shaking things up in the car world! Being able to get useful info about your car easily sounds great for drivers. And now that their token is on Bitget exchange, more people can get in on it. Super exciting news!
    • Just for completeness, I mean lists of companies. Many thanks, Peter
    • It’s one of the most popular traded markets on our end, and we take a look at the S&P 500’s technical overview in both weekly and daily time frames, the strategies to deploy for conformist, contrarian and ‘hold’ camps.   Written by: Monte Safieddine | Market analyst, Dubai   Publication date: Tuesday 27 February 2024 06:48 Dive into the conflicting sentiments of IG clients versus COT speculators and stay ahead of the game with upcoming market events. Don't miss out on this essential guide to understanding the current state of the S&P 500 and preparing for what lies ahead!       This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.    
×
×
  • Create New...
us